India Morning Report: A week for more introspection for the markets

Markets trundle down early on Monday as investors stay away from both Pharma and Banking scripos to take the remaining strength out of the market, leaving the new levels again fragile and the banknifty 16100 and nifty 8100 levels technically breached in early trades

Energy stocks are barely holding as  is new look resurgent Hero motocorp at 3000+ levels, ICICI Bank and IDFC are still holding 1560 and 146 levels after a cut in trading rates. Starbucks followers are hanging on to Tata Global but the stock has not really moved from below 160 levels in the first half of the year to 170 levels now. A lot of US competition in QSR (Burger chains) is entering India this year and next including the likes of Burger King, Johny Rockets and Carls Jr and that should speed things up for the Indian Consumer.

Power NBFCs are still positive trades though and along with GAIL and private sector LNG/CNG stocks should see markets off the bad week, not going below 7900 as the lack of buyers spooks traditionally leaning markets like India and FIIs move to options only trading again took the sails away from the markets

10 year yields are ready to move below 8.5% and the Rupee may well strengthen at current 61 levels, also giving markets a reasonable floor to work with. Gold and Oil price trends are still down globally and will likely hit new record lows on both as the Dollar trade strengthens ahead of rate increases and the wind down of QE2 completed next month.

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